Vision Twenty-One blurry in 3rd quarter

DavidB. Wilkerson

LARGO, Fla. (CBSMW) -- Shares of eye-care company Vision Twenty-One dropped 30 percent Friday on news of lower-than-expected third-quarter results and a warning that it will take a fourth-quarter charge.

Vision Twenty-One (EYES)
EYES, -2.55%
said its profit, excluding charges, came to $756,000, or 5 cents a share, compared to $264,000, or 3 cents, in the year-ago period. The average estimate of analysts surveyed by First Call was 16 cents.

Including a $1.3 million charge related to early repayment of debt, the company lost $494,000, or 1-cent a share.

Vision also said it expects to take an undetermined charge in the current period related to the "streamlining and integration" of certain acquired business units.

So who's clueless?

In this case, a clueless investor is one who got into Vision Twenty-One as a short-term investment.

The shares fell 1 7/8 to 5 1/4 in recent trading.

The company operates 183 clinics around the country. Most of them have optical dispensaries, and some of them have ambulatory surgery centers and refractive surgery facilities. Vision Twenty-One also holds 100 managed care contracts serving patients in 27 states, and has contracts with more than 6,000 additional eye-care professionals available for future managed-care business.

Chairman, President and CEO Theodore Gillette said in a statement he's "very disappointed" with the company's September period results. He blamed delays in the implementation of new account management systems that caused "accounting adjustments and unforeseen margin contractions."

By year's end, the new systems will be integrated, Gillette said.

Christopher McFadden, analyst at Wheat First Butcher Singer, told CBS.MarketWatch.com he can "understand the one-time disruptions" that hit Vision Twenty-One, and continues to have confidence in the company's strategy.

"We're just a little frustrated with the execution," McFadden said, "which is sort of typical of small companies."

The analyst said he may rethink his "buy" rating on the shares, and will be "more conservative" in his earnings estimates on the company for the next couple of quarters.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.